UPDATE
Unfortunately, the solution described below was temporary. It worked for about a week for me, at which point I decided to share it here, but the issue returned shortly after that. It just blows my mind that Microsoft cannot fix this.
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This issue has been extremely annoying, and none of the solutions I found online worked. Now, it looks I have finally found a fix for this - however, at the cost of disabling the File Explorer search history (a feature I do not find useful anyway).
So:
To disable search history in File Explorer, use these steps:
- Open Start.
- Search for gpedit.msc and click OK to open the Local Group Policy Editor.
- Browse the following path:
User Configuration > Administrative Templates > Windows Components > File Explorer
- On the right side, double-click the Turn off display of recent search entries in the File Explorer search box policy.
- Select the Enabled option.
- Click the Apply button.
- Click the OK button.
After that, when you create a new folder, the typing focus always stays on the folder name and never jumps to the address bar.